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How does CDD work between a real estate agent and a conveyancer - does each party do their own checks?

By default each party completes CDD on its own client because each has a customer relationship and the obligation cannot be delegated; reliance arrangements can reduce duplication.

By default, yes - each party completes CDD on its own client. A real estate agent has a customer relationship with the seller (and, once the contract is signed, with the buyer). A conveyancer has a customer relationship with whichever party engages them - typically either the buyer or the seller. Each party's CDD obligation attaches to its own customers and can't be delegated away.

CDD has three components and easyAML handles all of them:

  1. Identity verification (VOI) - handled by easyAML.
  2. PEP, sanctions and adverse-media screening - handled by easyAML.
  3. Ongoing monitoring - handled by easyAML.

Both the agent and the conveyancer must complete all three on their own client.

Where reliance helps. AUSTRAC's reliance framework (s37A and s38 of the AML/CTF Act) lets one party rely on part of another's CDD - typically the conveyancer relies on the agent's CDD of the seller, or the buyer's agent and seller's agent rely on each other for their respective clients. A written reliance agreement must be in place, the relying party still does its own risk assessment, and the relying party remains legally responsible for the integrity of the final CDD record.

easyAML facilitates the reliance data exchange in-platform when both parties are easyAML subscribers - the receiving firm pays an agreed fee, the originating firm receives the bulk of that fee, and notifications are sent each time a shared CDD is accessed. For more detail see Section 5 (Reliance and KYC/KYB Sharing). AUSTRAC source: Overview of reliance on customer identification by a third party (Reform).

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